Guys like these keep getting away with it because people don’t...

Guys like these keep getting away with it because people don’t do anything about it. Hopefully a few investors contact ASIC about this otherwise it’s just rinse and repeat.


Illegal phoenix activity involves the intentional transfer of assets from an indebted company to a new company to avoid paying creditors, tax or employee entitlements.

The directors leave the debts with the old company, often placing that company into administration or liquidation, leaving no assets to pay creditors.

Meanwhile, a new company, often operated by the same directors and in the same industry as the old company, continues the business under a new structure. By engaging in this illegal practice, the directors avoid paying debts that are owed to creditors, employees and statutory bodies (e.g. the ATO).

Illegal phoenix activity is a serious crime and may result in company officers (directors and secretaries) being imprisoned.